21.  The second set of criticisms against the creation of a European currency union draws attention to the circumstances when an exchange rate change is the appropriate policy response.

22.  Note, however, that with the establishment of the European currency union, no member country will have a balance of payments problem.

23.  Therefore, it is suggested, membership of the European currency union and reducing inflation in preparation for such membership will have an undesirable impact on these coutries.

24.  It follows, therefore, that the cost associated with membership of the European currency union in terms of lost revenues for these countries is unlikely to be significant.

25.  In brief, the case for the European currency union is well-founded.

26.  The Delors Plan advocated a three-stage process towards the creation of the European currency union.

27.  The above considerations imply that the path to the European currency union is unlikely to be smooth.

28.  Balance could only have been achieved by further devaluation of European currencies against the dollar.

29.  Although promising more cooperation with Europe, Blair also has promised a referendum if the government decides the U.K. should join the proposed European single currency.

30.  Although promising more cooperation with Europe, he has also promised a referendum if the government decides the U.K. should join the European single currency.